Hobbs v Commissioner of Taxation (Cth) [1957] HCA 58

Hobbs v Commissioner of Taxation (Cth) [1957] HCA 58

Section 102 (1) (b) did not apply because Geoffrey Robert Hobbs' gift was contingent on attaining twenty-five years or marrying under that age, and on failure of the contingent gifts there were cross gifts over and an ultimate gift to Alfred Robey Hobbs or his appointees. Accordingly, the income from the allocated...

Source-derived case information.

Jurisdiction
Australia
Procedural Posture
Case Stated in Income Tax Appeal / Case Stated Under S. 198 (1) of the Income Tax and Social Services Contribution Assessment Act 1936 1956 in an Appeal Against an Assessment Made Under S. 102 of the Assessment Act 1936 1952
Outcome
Question (1) answered No. Question (2) answered that it is not open to the learned judge so to hold. Costs reserved for the judge disposing of appeal.
Legal Topics
['income Tax Assessment of Trustees' 'trust Income for Infant Children' 'construction of S. 102 (1) (b)' 'contingent Trust Interests' 'accumulation of Income']
['taxation' 'trusts'] ['income Tax Assessment of Trustees' 'trust Income for Infant Children' 'construction of S. 102 (1) (b)' 'contingent Trust Interests' 'accumulation of Income']

Source-derived case record

Summary, issues, holding and outcome

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Procedural Posture

Case Stated in Income Tax Appeal / Case Stated Under S. 198 (1) of the Income Tax and Social Services Contribution Assessment Act 1936 1956 in an Appeal Against an Assessment Made Under S. 102 of the Assessment Act 1936 1952

Legal Issues

  1. 1 ['Whether s. 102 (1) (b) applied to income arising from shares allocated to Geoffrey Robert Hobbs under a trust where his entitlement was contingent on attaining twenty-five years or marrying under that age.' 'Whether the income was, under the trusts in the year of income, payable to or applicable for the benefit of Geoffrey Robert Hobbs within the meaning of s. 102 (1) (b).' 'Whether it was open to hold that the income was accumulated for Geoffrey Robert Hobbs within the meaning of s. 102 (1) (b).']

Ratio Decidendi

Section 102 (1) (b) did not apply because Geoffrey Robert Hobbs' gift was contingent on attaining twenty-five years or marrying under that age, and on failure of the contingent gifts there were cross gifts over and an ultimate gift to Alfred Robey Hobbs or his appointees. Accordingly, the income from the allocated shares could not be characterised as income which, under the trust in the year of income, must be payable to, accumulated for, or applicable for the benefit of Geoffrey Robert Hobbs.

Court Disposition

Question (1) answered No. Question (2) answered that it is not open to the learned judge so to hold. Costs reserved for the judge disposing of appeal.

Orders

  • ['Question (1) answered No.' 'Question (2) answered that it is not open to the learned judge so to hold.' 'Costs reserved for the judge disposing of appeal.']